Richard Shelby actually said...

I absolutely believe that credit default swaps need to come under the umbrella of Federal regulation.

the SEC's handling of credit rating agencies contributed to the subprime frenzy that is at the root of the current economic crisis.

These failures are not isolated. They cut across the agency's many functions and have had serious consequences.

Improvements in both programs will be necessary, if not imperative, to ensure that the SEC fulfills its investor protection mandate.